WPX Energy, Inc. (NYSE:WPX) Q3 2016 Earnings Conference Call - Final Transcript

Nov 03, 2016 • 10:00 am ET


WPX Energy, Inc. (NYSE:WPX) Q3 2016 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the WPX Energy Quarterly Report and Operations Update Conference Call. [Operator Instructions]

I would now like to introduce your host for today's conference, Mr. David Sullivan, Director of Investor Relations. Mr. Sullivan, you may begin.

David Sullivan

Thank you. Good morning, everybody. Welcome to the WPX Energy Third Quarter 2016 Update Call. We appreciate your interest in WPX Energy. Rick Muncrief, our CEO; Clay Gaspar, our COO; and Kevin Vann, our CFO, will review our prepared slide presentation this morning. Also along with Rick, Clay and Kevin, Bryan Guderian, our Senior Vice President of Business Development, will be available for questions after the presentation.

On our website, wpxenergy.com, you will find today's presentation and the press release that was issued after the market closed yesterday. Also our 10-Q will be filed later today. Please review the forward-looking statements and disclaimer on oil and gas reserves at the end of the presentation. They are critical and important to our remarks. So please review them.

So with that, Rick, I'll turn it over to you.

Richard E. Muncrief

Thank you, David. Good morning to everyone on the call. Glad you're with us today. I believe this is a perfect time to follow WPX. For all intents and purposes, we've just completed a major transformation of this Company. At this time, I want to recognize everyone here at WPX for their tireless determination and their willingness to accept the challenges that not only the market but also our leadership team placed in front of them. Very simply, thank you.

Over the past two years, we did everything we said we'd do. We stripped our house down to the studs and rebuilt everything, including our portfolio and our culture. But that's only the half of it. Now I want to draw your attention to what we're going to do for an encore. And if you look at our track record, you should have very high expectations because we certainly do. In my mind, the next two years are going to be just as big in terms of what we can accomplish. We're at another turning point and we're making that pivot every day. I call it WPX 2.0. You'll see examples all through the slides today of what I'm talking about. We're talking about something that's measurable, meaningful and sustainable. We're doubling down on our vision, a future that we built with bold, shrewd moves and our entry into the Permian Basin where we're surrounded by high-class neighbors. Over the next two years, we're planning to double our oil production and cut our leverage and G&A metrics in half. That's right, all that in 2017-2018. It means boosting oil by 25% next year and by 50% in 2018.

If you're an investor, that's very compelling. And if you work here at WPX, you're thinking we can do that. Let me put this in perspective. When we overhauled this Company, it was like building a brand new muscle car, the kind that you